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In: Business and Management

Submitted By lisamarie0516
Words 2166
Pages 9
Peru’s economic competitiveness has been sustained by regulatory reforms and open-market policies. Macroeconomic and monetary management is relatively prudent, with a structural fiscal rule keeping the level of public debt among the lowest in the region. Nowadays the world lives the era of globalization, characterized by economy and markets expansion, media, and transportation. With it, a new competitive environment arises, requiring countries to open their economies in order to communicate them with these new markets. Peru, a country located in the western coast of South America, is not the exception. Though, it has significant challenges to face in its economic development. (voxeu.org)
A country sharply divided in three geographic regions: In the North-west coastal areas contain primary oil deposits. Main traditional agricultural products including cotton, fish, and fruits grow along the Pacific coast. And most mineral resources, that involve approximately half of Peru's exports, come from mines in the Andes. However, despite this bunch of resources, Peruvian economy is essentially heterogeneous, and markets segmentation is extremely high. This can be attributed to major obstacles, differences and barriers in access to these resources companies need to grow their competitiveness.
An easier way to classify productive specialization in Peru is by dividing its GDP into four large economic sectors: extractive or primary activities (agriculture, fisheries and mining); basic transformation or infrastructure (construction); intermediate or industrial transformation (manufacturing); and services (home rentals, government, electricity, gas and water, commerce, among others).
However, most of these sectors have evolved, basically influenced by the expansion of government expenditure, and the enforcement of industrial policies in the mid-1970s, leading to a grow in the…...

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